Be Careful! Owning Gold Bullion is a Revocable Privilege in the U.S. – Not a Basic Right! (+3K Views)

The laws of gold confiscation are very clear in the U.S. During any time of national crisis, it becomes illegal to buy, sell, or “hoard” gold bullion in any form. It is delineated under an Executive Order and can be re-administered as quickly as the assets in your checking account can be frozen. The penalties for violation are 10 years in prison, $10,000 fine, or both. Words: 821

So says Michael Trudeau (http://bartergoldandsilver.wordpress.com/) in an article* which Lorimer Wilson, editor of www.munKNEE.com, has reformatted into edited […] excerpts below for the sake of clarity and brevity to ensure a fast and easy read. (Please note that this paragraph must be included in any article reposting to avoid copyright infringement.)

Trudeau goes on to say:

The freedom to own and retain gold bullion in the U.S. is a temporary freedom, a revocable privilege, and not a basic right. This has been demonstrated on four occasions in American history. Gold was confiscated under F.D.R. in 1933, under President Lincoln in the Civil War and twice prior to the signing of the Constitution. U.S. citizens were only given back this temporary freedom in 1975.

The Possible Ramifications of a MAJOR Crisis
Few would argue that we are rapidly headed for, if not already in, a national crisis. Each month the balance of trade deficit gets worse, while the national debt continues to grow. The FDIC is self-admittedly broke and today could not even repay 10-cents on the dollar, plus we are told that over 1000 banks are operating at dangerous levels — less liquid than many banks which closed right after the crash of 1929. The number of banks closings is already well ahead of 1929 levels and rising.

Our lawmakers have been busy spending billions and now trillions of dollars a year, which we do not have. They call it “deficit spending.” You might call it “robbery”. At this pace it is obvious we are in a full blown, old fashioned national crisis, the kind where hard working people have lost a large portion of their wealth over the past few years and are about to lose the rest of their entire life savings if action is not taken now.

Might Uncle Sam Want You (i.e. Your Gold Bullion)!
When [the proverbial _ _ _ _ ] hits [the fan], Uncle Sam will not worry about you or your life savings. Uncle Sam will be in a panic to get his books balanced to continue foreign trade and more borrowing if anyone will lend to us anymore. How could the books get balanced in a hurry? Fairly simply: by collecting all available valuable assets and having them reappraised upward.

Need an example? How about 1933 — under F.D.R. gold was confiscated and accumulated at $20.57 an ounce. Once collected, the U.S. government graduated the price of gold up to $35, an increase of approximately 70%.

They say those who are not students of history are doomed to repeat it. Don’t get caught with your Krugerrands, Maple Leafs, Pandas, Pesos or other bullion coins when the hammer falls.

What Gold Should You Own?
The reason you own gold [or are seriously thinking of doing so] is to be safe from any emergency or crisis, especially a national crisis, so what should you do? May I suggest the following strategy: convert a portion of your assets (a minimum of 25% to 30%) into [one or all of] the following:
a) pre-1933 or commemorative U.S. gold coins which have historically withstood the scrutiny of both the U.S. Supreme Court and the Treasury Department scrutiny
b) British Sovereigns
c) Francs
d) silver dollars (but not junk silver which is considered bullion).

The above are classed as collectibles and, as such, you will enjoy several privacy and tax advantages not possible with bullion. There is also a proven wealth building potential due to increasing demand and diminishing supply. Bullion in any form is clearly subject to confiscation. Confiscation is more than just a possibility – it is a reality as a “bust” cycle nears. Do not buy more bullion than you can afford to lose.

When you buy the above mentioned coins to protect your assets, you are simply converting a percentage of your paper assets into precious metals, which will rise in value as the paper money decreases in value, therefore ensuring that your present wealth or assets are protected and you may have a gain on top of that. At some point, when things stabilize, you just convert your precious metals back to paper.

In these economic times the only people who will be able to protect what they have left are the people holding a percentage of their assets in the right kind of precious metals.

2 comments

What this writer fails to recognize is that ALL US Gold and Silver coins are STILL legal US tender and cannot be confiscated or taxed by the US government. What happened in 1933 was a “…fool me once…” event. US Gold coins have NEVER been illegal to own, only bullion coins such as the Krugerrand.

If the US government ever tried in the future to dictate that all citizens turn in their gold and silver coins it will be the end of the dollar for domestic use for all intents and purposes. Gold and silver will go underground, no one will use FRN’s except to pay taxes and local business will turn to barter and a gold/silver based economy once more. For confiscation to be successful it will have to be enforceable. Respectfully submitted, GW

DISCLOSURE: It is our intent that all posts on this site be in accordance with the requirements, restrictions and terms of the Copyright Law of the United States and all other copyright treaties to which the United States is party and more specifically of the Digital Millennium Copyright Act - Blogger . As such, all posts on this website have been screened at Library of Congress Catalog as to their eligibility for posting. Should any post be deemed to be inadvertently in contravention of these Acts' terms please advise with substantiation of such apparent contravention (i.e. registration number) and the article in question will be immediately deleted from the site. Also, visit U.S. Code 17-107 Limitations on Exclusive Rights - Fair Use

FAIR USE NOTICE: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of financial, economic and investment issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

COPYRIGHT & DISCLAIMER: Lorimer Wilson is not a registered advisor and does not give investment advice per se. The articles to be found on the site are expressions of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time. Please consult with a qualified investment advisor who is licensed by appropriate regulatory agencies in your legal jurisdiction before making any investment decisions, and barring that, we encourage you confirm the facts on your own before making important investment commitments. The information on this site was obtained from sources which we believe to be reliable, but we do not guarantee its accuracy. None of the information, advertisements, website links, or any opinions expressed constitutes a solicitation of the purchase or sale of any securities or commodities. Please note that while Wilson may already have invested or may from time to time invest in securities that are recommended or otherwise covered on this website they do not intend to disclose the extent of any current holdings or future transactions with respect to any particular security and, as such, you should consider this before investing in any security based upon statements and information contained in any report, post, comment or recommendation you read on the site.